JSW Infrastructure delivered robust financial performance in Q3FY26, with consolidated revenue growing 14% year-on-year to ₹13.50 billion, meeting analyst expectations. The infrastructure company demonstrated strong operational momentum across its port facilities during the quarter.

Financial Performance

The company's revenue performance for Q3FY26 aligned with market forecasts, reflecting steady business execution across its diversified port operations.

Operational Highlights

JSW Infrastructure handled cargo volumes of 31.7 million tonnes during Q3FY26, marking an 8% increase compared to the same period last year. The volume growth was supported by several key operational developments across the company's port network.

Growth Drivers

The company's volume expansion was primarily driven by:

• Improved performance at Southwest and Dharamtar terminals
• Enhanced operations at the overseas port facility in the Middle East
• Incentive volume of 0.8 million tonnes at Port of Fujairah, exceeding volumes under the current operations and maintenance contract
• Interim operations at Tuticorin Terminal contributing to overall growth
• JNPA Liquid Terminal operations adding to the volume base

Operational Challenges

Despite the overall positive performance, JSW Infrastructure faced some headwinds with lower volumes recorded at the Paradip iron ore and coal terminals, which partially offset the gains from other facilities.

Analyst Outlook

Motilal Oswal has reiterated its BUY rating on JSW Infrastructure stock with a target price of ₹360. The brokerage firm's recommendation is based on a valuation of 16x FY28 EV/EBITDA multiple, reflecting confidence in the company's long-term growth prospects and operational capabilities.

The positive analyst sentiment reflects the company's ability to deliver consistent growth across its diversified port infrastructure business, despite facing some operational challenges at specific terminals.

JSW Infrastructure has received a maintained buy rating from Prabhudas Lilladher, with the brokerage revising its target price upward to ₹339 from the previous target of ₹324. The recommendation comes following the company's inline Q3FY26 operating performance that demonstrated resilient growth across key business segments.

Financial Performance Highlights

The company delivered solid operational metrics during the quarter, with overall performance supported by strong volume growth and business diversification benefits.

Operational Performance Analysis

JSW Infrastructure's Q3FY26 results reflected a mixed but overall positive operational performance. The 7.8% year-on-year volume growth was a key highlight, demonstrating the company's ability to expand its throughput capacity effectively. However, the ports net sales realization declined by 3.9% quarter-on-quarter, primarily attributed to higher volumes from terminals that operate with lower pricing structures.

The overall cargo volume growth was driven by several strategic facilities showing strong performance. South West Port and Dharamtar terminals contributed significantly to the volume expansion, while interim operations at Tuticorin and the JNPA liquid terminal provided additional support. These gains were partially offset by lower iron ore and coal volumes at the Paradip facility.

Business Segment Performance

The logistics business emerged as a standout performer during the quarter, helping to mitigate the impact of softer port-level unit metrics. This growth was led by Navkar's continued operational turnaround and strong performance in both EXIM and domestic volume segments. The diversified business model proved beneficial as growth in logistics operations helped balance the moderated port EBITDA per tonne, which was affected by a higher proportion of volumes coming from lower-priced terminals.

Valuation and Investment Outlook

Prabhudas Lilladher's analysis indicates that JSW Infrastructure is currently trading at attractive valuation multiples. The stock trades at an enterprise value of 20.5x and 14.9x for FY27E and FY28E EBITDA respectively. The revised target price of ₹339 represents a valuation of 21x EV of September 2027E EBITDA, reflecting confidence in the company's medium-term growth prospects and operational efficiency improvements across its diversified port and logistics portfolio.